Agenda item

Report of the Cabinet Member Finance

The Cabinet Member Finance introduced the report which summarised the Housing Revenue Account (HRA) revised forecast for 2015/16 and the Cabinet’s budget for 2016/17.

The Cabinet Member explained that in July 2015 the Chancellor had announced that rents in social housing would be reduced abruptly by 1% a year for four years (as opposed to a 1% rise each year for 10 years).  Whilst this represented good news for tenants it invoked a great deal of uncertainty for CBH and the Council with an estimated loss of £6.7m to the HRA budget up until March 2020. CBH had subsequently worked closely with CBC officers to revise its budget and plans to ensure spending could be contained within the limits which were now necessary. He was pleased to report that as a result of this work the proposed budget was positive and would contain sufficient resources to maintain the decent homes standard, existing services, the long term viability of HRA reserves, delivery of the windows and doors improvement programme, delivery of the existing new build programme (schemes currently being progressed) and service improvements for vulnerable groups.

He reported that the savings targets which had been identified included management costs savings and the reduced need for the management revenue contribution to fund the capital programme. In 2016/17 the overall cost of repairs and maintenance had reduced to £4.1m; £7.7 would be invested in property improvements and major works, £400 k would be invested in disabled adaptation and £4m would be invested in new build. Whilst there remained uncertainty with regard to Government policy post 2020 the Cabinet Member explained that positive action had been taken whilst maintaining a high level of financial prudence. The Cabinet Member Finance thanked officers and CBH colleagues for their efforts in bringing forward this positive budget in difficult circumstances.

The Finance Director, CBH was invited to address Council. He explained that it was important at the outset to ensure that the impact of the cut was offset and this was achieved via a £1.4m cut in the management fee, £1m in repairs and maintenance and £2.2 m in the use of reserves. He made reference to the discussions he had with the Budget Scrutiny Working Group where he had highlighted that the quality of the service provided by CBH would not be reduced in order to deliver savings but they would be achieved via a leaner staffing structure, more efficient processes and a reduction in work sub contracted out.

A recorded vote having been required the following resolutions were passed unanimously.

Voting For 32: Councillors Babbage, Barnes, Britter, Chard, Clucas, Coleman, Fisher, Fletcher, Harman, R Hay, C Hay, Jeffries, Jordan,  Lillywhite, McCloskey, McKinlay, Murch, Nelson, Payne, Rawson, Regan, Reid, Ryder, Savage, Seacome, Stennett, Sudbury, Thornton, Walklett, Wheeler, Whyborn and Wilkinson.

RESOLVED THAT

1. The revised HRA forecast for 2015/16 be noted.
   
   
2. HRA budget proposals for 2016/17 (Appendix 2) including a proposed rent decrease of 1% and changes to other rents and charges as detailed at Appendix 5 be approved.
   
   
3. The proposed HRA capital programme for 2016/17 as shown at Appendix 3 be approved.